Climate and Environmental Economics: Difference between revisions

=== [[Integrated Assessment Models (IAMs)]] ===

IAMs combine economic models, climate models and policy information into one modelling framework. they are used to simulate interactions between different input variables and to compare different policy alternatives.

===[[Carbon pricing]] ===

Pricing greenhouse gas emissions internalizes the external costs of these emissions to society, which are not otherwise reflected in the market price of goods and services. Carbon price can be implemented through a carbon tax or a cap-and-trade policy.